Yankee27 Yankee27
  • 24-04-2020
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If the Fed buys bonds, then what is being used?




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lstott192
lstott192 lstott192
  • 30-04-2020

Answer:

If the Fed buys bonds in the open market, it increases the money supply in the economy by swapping out bonds in exchange for cash to the general public. Conversely, if the Fed sells bonds, it decreases the money supply by removing cash from the economy in exchange for bonds.

Explanation:

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